Extension needed for dirt-poor to outgrow govt subsidy

Extending the Pantawid Pamilyang Pilipino Program or 4Ps beyond five years for current beneficiaries is needed to allow the poor to “outgrow” the government`s conditional cash transfer (CCT) program. This was emphasized by experts from the state think-tank Philippine Institute for Development Studies (PIDS) recently. PIDS Visiting Research Fellow Vicente Paqueo noted that, the “Pantawid” extension will be economically and socially beneficial and will also give the government more time to work out a transition strategy and pursue policy reforms that will lead to a massive expansion of job opportunities for beneficiaries. Paqueo presented five arguments supporting the CCT extension: (1) poverty and income inequality remain high and stable; (2) the Pantawid program has been a credible, effective, and valuable instrument for poverty alleviation in the short run; (3) an extension will be an opportunity to produce greater positive impact on the welfare of the poor; (4) an extension will provide social stability and support to allow the government to undertake reforms; and (5) a significant improvement in high school enrollment and completion is expected with moderate subsidies for cash grants.